Lambert Chapman LLP complete Sunrise Walk

Here come the girls! 

Well they did it and without much training and despite a few aches and minor pains no serious injury; but what did they think?

Carrol (No 3 above) commented, “As the oldest member of the Lambert Chapman team, I was a little apprehensive about walking for 18 km especially in the warm weather, but I was reassured that the “youngsters” would not abandon me.  True to their word I was encouraged by some pithy conversation and some (pretend I’m sure) grievances about their own aches and pains and was pleasantly surprised to cross the finish line in 3hrs and 45 minutes in step with two teammates. 

The sense of satisfaction was felt by all of us, none of whom are fitness fanatics and each of us has learnt that walking can be done by anyone especially if you have a worthy charity goal.  The marshalling (especially by the Lambert Chapman volunteers) was very encouraging and the chocolate bar after 9 km much needed, as was the coffee and bacon roll breakfast.  It may be too early to commit to another walk next year but the spirit is there even if the body is not quite in agreement.

Two replacement knees on Lambert Chapman expenses please!!”

Sarah (No 2 above) said, “ As those who know me will tell you exercise and getting up early are not easy tasks for me. I was surprised and pleased that I managed to complete the walk and I think we all did a grand job. I think we are all paying for it now though.”

Tracey (No 4 above) said, “When we were asked if anyone was interested in taking part in the Sunrise Walk for Farleigh Hospice I thought how nice it would be to be walking at daybreak. However, when faced with the alarm clock going off at 10 past 3 in the morning there were slightly different sentiments going through my head!

Once having got up though, I thoroughly enjoyed the experience. It was lovely to be one of so many ladies taking part, and it was lovely to be walking with friends and having a natter, and raising money for a really worthwhile cause. With hindsight, the little bit of practise we put in struggling from pub to pub a couple of weeks before, was probably not enough, as my legs are still feeling the strain! So next year, I will have to limber up a little bit more.” 

Sue (No  6 above) said, “It seemed such a lovely morning and then I realised we had to walk 11.9 miles!  The atmosphere was great, weather couldn’t have been better and the walk was pretty so these factors easily took your mind off how far you still had to go.  I thoroughly enjoyed the walk, will definitely do it again and surprised myself at how well we had done.”

Lambert Chapman LLP Partner Lisa (unnumbered) added, “3.45am and the alarm sounds in the bedroom, I wake up surprisingly alert before the realisation dawns on me of the 12 mile walk ahead.    As I leave the house to pick up the girls from the office I am just so pleased that whilst it is misty at least it is cool and not raining, ideal walking conditions. 

We arrive at the Discovery Centre and are overwhelmed that despite the unsocial hour we are greeted by over 500 happy smiling women who are all keen to commence their sunrise walk.   We set off at 4.45am and almost immediately run into our first hurdle, the directions seem to have gone awry and we end up having to try to interpret the map, sadly we go of course along with about 50 other women – what is it with women and maps!   Back on track we continue our quest to push on and are pleasantly surprised at how quickly we arrive at the half way point.   I felt it was the constant gossiping and our will to continue to overtake people on the route that contributed to the good time we achieved.   Along the route we are encouraged by the Lambert Chapman Marshalls, firstly Sean and Richard who are keen to point out our error, secondly by Partners Nigel and Nick who seemed to be making the most of their time by catching up with their reading and finally to Chris who was taking it easy sunbathing in his chair.  

At 8.30am we cross the finish line still with a smile on our faces and pleased that we all made it round in one piece.  I thoroughly enjoyed the walk and will definitely be putting my name down for next year.    The camaraderie of the women on the course was commendable and there was not a sad face in sight, only the sound of gossip and laughter.     I am also pleased that after a long kip and a leg massage I have no reported aches or pains and even made the effort to walk to work the day after.   Initial indications are that nearly £50k has been raised for Farleigh Hospice of which we were able to raise approx £1,100. 

Finally I would like to thank the Girls in the team for their sterling effort and for their company without which it would have been a much more arduous task to complete.”  

Sarah (number 5) added, “It was nice to see so many ladies turning up for the sunrise start especially as it was so early in the morning.  It was a good atmosphere and the weather was good. 

It was a shame that we managed to get lost just as we started but it made it that much more exiting. I would definitely do it again next year as it is for a good cause and it I found it most enjoyable.”

Sean acted as a marshal at Checkpoint 1, “I was lucky enough to be a marshall on the first checkpoint with Tricky which meant that we had to be at the Discovery Centre by 4.15 am ready for our instructions. When I arrived Tricky already had the map showing our directions to the checkpoint so after signing in, we got in the car and left.

This is when we encountered our first problem, Tricky was in charge of directions and he had put the map in the boot. After pulling over to get the map out we successfully made it to our checkpoint, surprisingly light for 4.40 in the morning. We were also accompanied by Raynet so that details could be passed back to control of the first walker.

We commenced putting up the Lambert Chapman Banner and before we had finished the first walkers were with us with number 291 in the lead, so I recall, followed by a significant number of early birds who started the walk at sunrise. But where was Lisa Potter and the rest of the Lambert Chapman ladies who also started the walk at sunrise, they were nowhere to be seen?

Approximately 15 minutes latter we saw some pink shirts in the distance but coming from a completely different direction and there were our girls blaming the confusion on a dodgy sign. All in all a well run walk raising over £60,000 for Farleigh Hospice. I would certainly help out again.

 Nick and Nigel were positioned just before check point 3 at Felsted. Nick’s thoughts were, “When the clock went off at 3.45 I looked out of the window to see thick fog and it remained for most of the event. Having visited the office to collect a banner I then put it up at Felsted School the half way point and was ready at my appointed rendezvous time of 5.15 for 5.30 start only to find no one else was there! All of a sudden cars arrived from all directions and we, Nigel and I, were issued with our marshalling jackets and shown to our spot by the Felsted Water Tower.

We sat waiting and walked down to the gate to look across the fields – nothing. Silence. We walked back and waited for a few minutes and suddenly heard voices, quite a few of them and then the leaders, about 20 of them, marched past in twos at a rapid pace! Bang went our tea and coffee order for a few minutes. After that it was a constant stream of ladies, all saying good morning and being friendly some asking us our number which we were at a loss to understand for a while before we cottoned on they were trying to see the distance.

We saw a few faces we knew and all of our colleagues. Having been told we would be stood down by 11.00 we were delighted to see the Raynet volunteers at the rear of the walk at around 8.30 and it gave us a chance to dismantle the banner and race round to the finish and meet up with our walkers. There was great cameradory amongst those who had finished and everyone seemed to have enjoyed themselves.

 As a Partner responsible for Marketing I was delighted that our Firm had been able to participate in such a good event and from comments made by Farleigh people a good sum of money will be raised. We like to play our part in the local community and hopefully we have got it right this time.”

Paul Short looks at Take Home Pay

At little while ago I did an article for the web site trying to demonstrate that take home pay was not always a good indicator of someone’s pay package. It all depends on the extras. Since then, we have had the furore over MP’s expenses (cue my web article of 15 January 2007).

MP’s have been at it for a long time. Their base salary does not look anything super duper. But then add on the expenses and gross these up at their marginal rate of tax because they are tax free and then add on the copper plated pensions, provided out of the public purse, plus a few other perks and you have a formidable pay package, which if maximum allowances were claimed could be in the region of £355,000 a year.

Now there is something of a witch hunt on MP’s at the moment. We should remember that many of the expenses are authentic and justifiable and should not be regarded as part of their pay package but some are not. Even so, some MP’s pay package will come to a tidy sum. It is, of course, hugely tax efficient. All the benefits within and outside of Westminster are tax free, leaving some modest exposure to 40% tax on the top slice of their Parliamentary salary.

Now let us compare their situation with that of one of the purported high earners whom I shall call Gordon. I am still frustrated that MP’s define the rich and wealthy in terms of their income. They do not seem to be able to grasp that wealth and riches are a consequence of having capital. This takes me back to a web article I wrote in February 2006, comparing family A (zero income but huge capital) with family B (high income but no capital), with family A qualifying for all Brown’s welfare handouts. Anyway, back to Gordon. Gordon has an income of £200,000 a year and is reviled for being rich and wealthy. Gordon is self-employed, though. Out of his £200,000 a year (which he has only really been earning in the last year of so) he has to start funding for his retirement in around 10 years time.

To make up for lost time, Gordon is putting in £50,000 a year. It should give him a reasonable pension but nothing on the scale of an MP. Although Gordon has to pay tax on all of his earnings, the bulk of it at the current top rate of 40%, he has to retain at least £30,000 of post tax income in his business to help the continuing finance of its working capital. The alternative is to go to the Bank and become heavily geared.

Gordon is also having to finance his two children through university. They are in their first and second year respectively. It is expensive but Gordon doesn’t mind as he puts a premium on education and wants his children to graduate and have the best opportunity of securing a good job. Gordon lives in a reasonable four bedroomed house within commuting distance of London. It is very nice but far from a mansion. It was worth some £500,000 a year ago but Gordon thinks it might only be worth £425,000 now. He still has a mortgage of £150,000 on the property although he expects to clear this within the next 10 years. Nevertheless, it represents a significant monthly out going.

Gordon has always been strong on protection and having adequate insurance in place to safeguard his family and his house. That is another heavy out going. Gordon’s family run three modest cars and they do like to have one foreign holiday a year with possibly another in the UK. Gordon finds that all these commitments means that he does not have that much disposable cash left at the end of the year.

Gordon works 50 to 60 hours a week on average on his business and feels he needs the holidays to re-charge and refresh himself. Do you or I go and tell Gordon that he is rich and wealthy and that is why he is going to be paying three times as much tax as his struggling local MP?

Uncle Audley considers Quantitive Easing and suggests “Don’t ask Gieve!”

 Uncle Audley has been scathing about the performance of Mervyn King and the Monetary Policy Committee at the Bank of England.  In his view they have reacted far too slowly to the gathering storm.  It seemed obvious to most people in the country from the middle of 2008 that we were in a recession.  Indeed Uncle Audley was, even then, going on about the danger being depression.  Unfortunately the only D word coming out the Government was of a downturn. 

Yet the number of members at the MPC at this time were actually pushing for an increase in interest rates, not a reduction.  The sole voice arguing for base rate reduction was David “Danny” Blanchflower.  Now of course they have all changed their tune and we now have a base rate of 0.5% in play.  There is not much more to go and the Bank of England have moved onto Plan B which is the quantitive easing policy. 

Uncle Audley takes the matter on:

“Quantitive easing does sound a little more reassuring than printing money.  I suppose I could say it is just semantics and we have some spinning here.  Nevertheless I know there is a difference and quantitive easing is not quite the same as printing money.  The latter does give immediate connotations of inflation.  Printing money is the first step along an inevitable path to that end. 

What I do find astonishing is the comments by Sir John Gieve who is the outgoing Deputy Governor of the Bank (maybe thank goodness for that).  He is reiterating the point that inflation will be kept low.  Apparently this will require the Bank to start raising rates before it is obvious on the street that the economy is getting better.  Now, with the best will in the world, how are we to believe that the Bank will recognise the situation before those people directly affected.  We already have had the situation where the MPC were far far far behind the pace in terms of reducing rates.  Why should we think they will be any better in recognising the need to raise rates before everyone else at the sharp end?  They hardly inspire you with confidence and the smart money is on the Bank of England moving too slowly so that inflation proves to be well and truly back.  I think it was rather a case of “Do not ask Gieve”.

Lambert Chapman LLP’s Chris Harman reviews the 2009 Budget

 In my Budget 2008 comments I wrote ‘I expect this to be Alistair Darling’s only Budget. He has been handed the task of implementing some unpopular changes and will no doubt take the flak for a few more financial problems and then will move / be moved on.’  Alistair has now got two Budgets under his belt, is still in office; what more financial problems are to come?

 The world economy is in a mess and we shouldn’t blame Alistair.  The philosophy in the good times of ’spend more and borrow more’ could only lead to problems when (not if) bad times returned. 

 

I am shocked by the inaccuracies of the IMF and the Government in their estimates of both global and national budgets.  The estimates given to us last autumn of the world and of our nations share of ‘toxic debts’ from the lending strategies of banks were dreadfully inaccurate and far too low.  We now get fed more bad news and told that it will get better soon.  Why should we believe that?  The recent track record of forecasts of debt, borrowing and growth are so poor I can only see more bad news to come.  I also expect a future Budget to include a new form of ’short term tax’ (this happened many years ago when William Pitt the Younger introduced income tax to fund our war against France).

 

This year Alistair has had to present a Budget that is to kick start and then boost our economy whilst being affordable.  A tough task. 

 

There will be much in the press and media about the finer points of the 2009 Budget and how it will affect business and individuals so I only wish to make comments on four areas;

1.  Car scrappage.  I wonder how much of the £2,000 discount will stay in this country by being spent on cars that have been built here?  How much of the car manufacturers profit derived from the £2,000 will be invested in the U.K?  What will be the effect on the manufacturers of spares for the older cars that will now be scrapped?

2.  Stealth Taxes.  They are still there and the overall tax take is likely to keep increasing.

3.  HM Revenue & Customs Powers & Penalties.  From April 2010 there will be a reform of the penalties for the late filing of Tax Returns and the late payment of taxes.  ‘Reform’ means increasing the penalties as well as removing the current tax geared system that operates in some areas and also applying penalties to employers and contractors for the late payment of PAYE and CIS.  

4.  Efficiency drives. HM Revenue & Customs have been subjected to staff cutbacks, office moves and restructuring.  This has left those staff still within the HMRC unsettled, frustrated and under resourced.  The result has been a reduction in the level of service HMRC provides and an increase in the cost to business and individuals in the management of their tax matters.  The Government has cut HMRC staffing and resources back too far.  The ’savings’ may look good on paper but I feel they will be short term savings and there will be a big cost to us all in the long term. 

 

I do hope that the 2009 Budget won’t, in the words of a friend, ‘over promote and under deliver’.

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Lambert Chapman LLP’s Nick Forsyth reviews the 2009 Budget

I feel for Alistair Darling. No, I really do. After Blackadder Goes Forth one gets an image in ones mind when his surname is mentioned and his eyebrows attract unnecessary attention before we think about his job as Chancellor of the Exchequer. It’s always difficult to follow a great predecessor (although Bob Paisley did a reasonable job of it) but to follow a fool should be a straightforward task unless he remains your Boss, survived far too long in your current job and wasted all the money he took by whatever stealth method used.

Mr Darling’s job is to get Labour to the next election and do what he can to get his Boss past the post in first position. It really is a tough one! To hamper his main opponent he uses the guile of a higher tax rate in an effort to make them commit tax  plans and then looks to continue spending money to keep his voters in work for as long as possible. Can it work? Possibly it can but these days the electorate, or those of them who can bother to use the vote might be a little less niave than in the past, though I understand a donkey wearing a red rose was elected in the now defunct Dunfermline East in June 1983.

 

Over the years I’ve met many a board who are floating overambitious with their income and growth projections but spot on with the costs. Borrowings normally start reducing, sometimes quite rapidly, in month 10 for the plan but if the plan is not achieved it all it can be catastrophic. I think we have this situation here and worry that things will turn out much worse than currently being forecast.

 

When I heard the speech I did like the increased capital allowances and carry back of losses but due to the loss sums being restricted these might not amount to that much help. Increasing taxes is inevitable but to tax the entrepreneurs might prove to be not such a smart move.

 

In my mind our two main parties are both bereft of ideas and an election is looming. It’s a bit like the upcoming Newcastle United Vs Middlesbrough game; everything hangs upon it yet neither side has any clue on tactics or how to win the game. In this case they might both end up losers whilst in the election it might be the winner that lives to regret it.     

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Uncle Audley adds his thoughts on the 2009 Budget

Uncle Audley was relieved by the Budget.  His hot tip had been that the Government would scrap the Royal Navy to save costs, not that they have left much of it over the last decade.  “Well, at least the Royal Navy is saved but it will be the defence budget which will bear the brunt of the public sector savings and more British servicemen will be risking their lives with inadequate technology and equipment”.

 

How do you hope to reinvigorate an economy when you disincentivise the wealth creators.  It is all very well trying to do more for the young who are out of work and out of training but there has to be real jobs created for them.  I thought the lesson had been learnt that higher tax rates actually stifle enterprise and initiative.  Apparently the lesson has not been learnt. 

 

Pension funds invest in UK businesses.  It seems to me that the Government’s measures to restrict tax relief will have the impact of reducing investment in British businesses.

 

I noticed also about restrictions in tax relief for UK holiday lets.  They are on the same footing as foreign holiday lets so again it seems to me that this will encourage acquisitions in foreign property markets at the expense of the indigenous UK property market. I maybe wrong and we will have to see how things work out.

Lambert Chapman LLP’s Lisa Potter reviews the 2009 Budget

 

GOOD, BAD and INDIFFERENT, to me this sums up the contents of the 2009 budget.    Given the current climate and the potential effect on their re-election, Darling was not expected to deliver a budget full of excitement and for this reason he did not disappoint.

 

Positive outcomes include the incentives for electric cars and the scrapping of cars over 10 years old, although the latter could be abused by those trying to earn some money if not closely regulated.   The ability to use furnished holiday letting losses from overseas property against other income in the UK is again a positive move, as currently many individuals are suffering losses as a consequence of less travel and the high cost of the Euro.      The continuation of the higher stamp duty level of £175k until the end of December 2009 is a stimulant to boost the housing market once again.    Also provides an opportunity to those with money to invest in property for their long term pension.

 

The bad news is that there were no real changes to help smaller businesses, I would have liked to have seen a radical change to the VAT threshold which again has risen by the mere £1,000, this is a limit that has never increased inflationary.    Also the removal of the higher rate relief on pension contributions for individuals earning over £150k – for a government that wants to encourage us to invest in personal pensions so they do not pick up the tab for it, how does this help?

 

Indifferent is the static status of the corporation tax rates and the changes to capital allowances, which whilst a positive step, in the current climate I do not feel will encourage additional spending in this area.     

 

The naming and shaming publicly of tax offenders, one thinks this is a ploy to encourage people to play the game properly, the reality is I feel this would have no benefit to either the revenue or taxpayers in general and will cost the government lots of money to ensure it is implemented correctly.

 

Let’s hope that as part of the new regime for attacking tax offenders whereby more detailed accounts are required for a period of 5 years after the offence they insist on using qualified accountants to prepare them!  

 

Overall another boring budget where Darling has not been daring.

 

 

  

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Lambert Chapman LLP’s Paul Short reviews the 2009 Budget

 It is always difficult to comment in the immediate aftermath of the Budget.  The devil is always in the detail. 

The main issue for our clients will be the tax hikes and pension relief restrictions being introduced.  The current tax year will be a very busy one for me in terms of tax planning.  We will see plenty of what I call the Greaves/Nicholson effect and an awful lot of high earners will be reducing their income to £99,999 or £149,999 per year (again depending on the devil in the detail).

 

Apart from tax planning, I also expect to be busy on company incorporations, particularly of professional practices.  Part of the driver for this will be to mitigate the impact of higher rate relief loss on pension contributions. 

 

The increase in company incorporations which will ensue will be interesting.  At the beginning of the decade of financial mismanagement, Brown introduced the £Nil rate band of corporation tax which led to a surge in company incorporations predictable to everyone bar his Treasury Team, it seems.  This dark age in our island’s history will perhaps finish with another surge of incorporations.  Again, no doubt, this Government will see this as evidence of a return to health for the economy.

 

Unfortunately, these measures will make off-shore tax structures and arrangements more attractive to the highest earners.  Despite their fine words about closing down such arrangements, the Government continue to do nothing.  Indeed, they continues to be the industry’s most effective salesman.

 

The Government’s measures confirm one thing to me.  Socialists have never understood small business.  They never have done, and they never will do.

 

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Lambert Chapman LLP’s Nigel Whittle reviews the 2009 Budget

 Confidence is in short supply and this Budget has not helped to improve the situation.  With the enormous UK Government deficit continuing for years to come, our relative position with the rest of the world looks highly challenging.  

Alistair Darling’s method of combating this problem seems to be by taxing the wealthiest.  This will only lead to emigration of those that the country needs to retain, or evermore complex tax avoidance measures being created which will reduce the overall tax take.  The only real effective way of reducing the Budget deficit is by reducing Government spending. 

What is of even greater concern is that the Conservatives are not making clear that they will pursue a policy of low taxation which will inevitably lead to a continuation in lack of confidence in our potentially high earning business leaders.  Our hopes did rest upon a change in Government next year which would implement business friendly policies. 

 

Let us hope upon further consideration by George Osborne and David Cameron that they will tackle the Budget deficit and restore confidence in the UK economy.

 

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